ED raids multiple locations in Kerala linked to ex-CM Pinarayi Vijayan in a Rs 182-crore money laundering probe. The investigation focuses on the CMRL case and payments to his daughter’s firm, sparking a massive political controversy.
A massive political firestorm has engulfed Keralam following extensive searches by the Enforcement Directorate (ED) across 10 locations in the state and Bengaluru. The raids, targeting premises linked to former Chief Minister Pinarayi Vijayan, are part of a high-stakes money laundering probe involving the Cochin Minerals and Rutile Limited (CMRL) case. The investigation centres on a Rs 182-crore money laundering probe.
Details of the ED Investigation
Key allegations being scrutinised by central agencies include: Exalogic Solutions, a firm owned by Vijayan’s daughter, Veena, allegedly received Rs 2.78 crore from CMRL for services that investigators claim were fraudulent. Empower India Capital Investment is accused of extending a Rs 50-lakh loan to Exalogic despite repayment defaults. The probe is investigating the diversion of Rs 182 crore through CMRL management-linked entities via alleged “fake expenses” and shell transactions.
The raids, which began early Wednesday morning, covered multiple locations in Thiruvananthapuram, Kannur, Ernakulam and Bengaluru. Officials said the searches were part of an ongoing investigation into alleged fraudulent financial transactions and “fake expenses” flagged during earlier probes by multiple central agencies. According to officials, one of the key allegations under scrutiny involves payments made to Exalogic Solutions Private Limited, a firm owned by Vijayan’s daughter Veena, which allegedly received Rs 2.78 crore from CMRL under the guise of consultancy services. Investigators also said Empower India Capital Investment Private Limited allegedly extended loans of Rs 50 lakh to Exalogic despite defaults in repayment. Officials further said the probe is also examining broader allegations of fictitious expenses amounting to Rs 182 crore and suspected diversion of funds through entities linked to the management of CMRL. Intelligence inputs also suggested that Veena was residing with her father at the Thiruvananthapuram premises when the ED team arrived for the search operation.
Pinarayi Vijayan Alleges ‘Political Vendetta’
Following the raids, Pinarayi Vijayan strongly termed the action a “targeted political vendetta,” alleging that central agencies were being misused for political purposes. He also launched a sharp attack on the BJP-led central government and referred to past political statements made during the election campaign. He said, “They were here conducting a search from 7 pm yesterday until this very moment. The team that came is only following instructions from above; after all, isn’t that how our country works now? Being officers, they are bound to obey the orders given by their superiors. However, the way these things are handled is incorrect. It is a form of political interference. I believe their spending so many hours here has actually helped us understand many things. This didn’t happen suddenly; the ED has been wanting to do this for a long time.”
He further added, “Even someone like Rahul Gandhi previously questioned, ‘Why isn’t Pinarayi’s house being raided? Why isn’t Pinarayi being arrested?’ That was what he asked. The BJP government is taking such planned and coordinated actions against opposition leaders and workers across the country.”
Political Reactions Erupt Across Kerala
The allegations triggered strong reactions across political parties in Keralam. Keralam Home Minister Ramesh Chennithala said the state government had no prior information about the ED action and clarified that no assistance was sought from the state machinery. He said, “The Keralam government or the Home Ministry has no information about this raid. They did not seek our support either, so we do not know the details of the operation. This question needs to be posed to the ED.” He further alleged political understanding between rival parties, stating, “Everybody in Keralam knows there was an understanding between the BJP and the CPM.”
BJP MLA V Muraleedharan, however, defended the investigation, calling it a legal process. He said, “It’s a legal procedure. I don’t understand why CPI(M) is so agitated… there is a case under PMLA… if they have any legal counter, they should have submitted that in court.” He further added that the investigation had been ongoing for years and accused the opposition of attempting to politicise the matter.
Senior CPI(M) leader Nilotpal Basu rejected the allegations and called the ED action a “political charade,” accusing central agencies of being misused. He said, “We have protested across Keralam. The central govt has weaponised the CBI and ED…the charges that they make and the level of success in prosecution are abysmally low. It’s a political charade; we won’t accept it.”
CPI(M) MP John Brittas termed the raids a “conspiracy” by the Congress and BJP while acknowledging that incidents of violence had taken place during protests. He, however, urged authorities to follow due process in dealing with alleged damage to property.
Protests and Violence Erupt
Law & Order ADGP H Venkatesh said police teams had been deployed and strict action would be taken against those involved in the attack on ED vehicles. “A team has been sent to arrest the accused. Strong legal action will be taken… none of the accused will be let off,” he said.
Tensions escalated in the state capital after CPI(M) workers allegedly attacked the convoy of ED officials as they were leaving Vijayan’s residence following a seven-hour search. Protesters reportedly pelted stones, bricks and eggs at official vehicles, causing damage and forcing security personnel to intervene. Following the incident, ED officials lodged a complaint with local police authorities. Security has been tightened across Thiruvananthapuram as investigations continue and the political confrontation intensifies.
Background of the Probe
The ED probe stems from allegations of irregular financial transactions involving CMRL and associated entities, including Exalogic Solutions. Earlier findings by the Income Tax Department and Serious Fraud Investigation Office (Serious Fraud Investigation Office) had flagged suspected fake expenses, shell transactions, and irregular remuneration patterns. The matter had earlier been examined by the Kerala High Court, which upheld the validity of the ED investigation under the Prevention of Money Laundering Act, allowing the probe to proceed.
As the investigation deepens, the political battle in Keralam has intensified, with the CPI(M) alleging “targeted vendetta” and the opposition and BJP defending the action as a lawful probe under established legal procedure. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)